Administrative Law

Arellano University School of Law

aiza ebina/2015

Midland Insurance Corporation vs Intermediate Appellate Court

143 SCRA 458
Adjudicatory Powers
FACTS: On October 1, 1984, a judgment was rendered by the Insurance Commission in favor of complaintappellee, Sisenando Villareal, and against herein petitioner Midland Insurance Corporation.
Petitioner's appeal was initially-accepted by the IAC as can be gleaned from the letter-advice dated
February 8, 1985, notifying petitioner's counsel to file appellant's brief. However, a Motion to Dismiss
appeal dated March 1, 1985 was filed by the complainant-appellee on the ground that the petitioner
herein, failed to perfect its appeal within the reglementary period. Despite the opposition thereto
interposed by petitioner Midland Insurance Corporation, the Respondent IAC, on August 14, 1985 granted
the stated Motion to Dismiss on the ground that by said court's computation of the elapsed period from the
date of receipt by herein petitioner of the decision of the Insurance Commission to the time the notice of
appeal was filed before said Commission and notice of appeal and manifestation submitted to the IAC on
December 5, 1984, it would appear that petitioner's appeal was belatedly made.
Respondent-appellant's contended that under Batas Pambansa Blg. 129 the reglementary period of 15
days from receipt of the decision or judgment within which to file an appeal is not applicable to quasijudicial agencies such as the Insurance Commission. However, in its dismissal IAC ruled that the applicable
rule is explicit in No. 12 (c), providing for appellate procedure under the Interim Rules which state that
'appeals to the Intermediate Appellate Court from quasi-judicial bodies shall continue to be governed by
the provisions of Republic Act No. 5434 insofar as the same is not inconsistent with the provisions of B.P.
Blg. 129. The pertinent provisions in Rep. Act No. 5434 provide:
SEC. 2. Appeals to the Court of Appeals shall be filed within the fifteen (15) days from notice of the ruling,
award, order, decision or judgment.
There is no conflict between the period to appeal in R.A. No. 5434 and Sec. 39, B.P. 129 which provides:
Appeals. The period for appeal from final orders, resolutions, awards, judgments, or decisions of any
court in all cases shall be fifteen (15) days counted from the notice of the final order, resolution, award,
judgment, or decision appealed from: Provided, however, That in habeas corpus cases, the period for
appeal shall be forty-eight (48) hours from the notice of the judgment appeal from.
The petitioner's case, however, rests on the assumption that it had timely filed its appeal on November 7,
1984 because Section 2 of Republic Act No. 5434 which governs appeals originating from quasi-judicial
bodies grants a party ten (10) days from notice of the resolution denying a Motion for Reconsideration. As
notice of the denial of petitioner's motion for reconsideration by the Insurance Commission was received
by petitioner on October 30, 1984, the latter maintains that it had ten (10) days thereafter or until
November 9, 1984 within which to file its appeal and this was filed with the IAC on November 7, 1984.
Petitioner's submission is that the appeal was thus filed within the reglementary period.
ISSUE: Whether or not the petitioner had timely filed its appeal because Republic Act No. 5434 which
governs appeals originating from quasi-judicial bodies grants a party ten (10) days from notice of the
resolution denying a Motion for Reconsideration
RULING: Yes. It can be gleaned from the powers and duties of the Insurance Commissioner enumerated in
Sections 414-416, 187, and 241 of the Insurance Code performs quasi-judicial functions a term which
applies to the action, discretion, etc., of public administrative officers or bodies, who are required to
investigate facts, or ascertain the existence of facts, hold hearings, and draw conclusions from them, as a
basis for their official action and to exercise discretion of a judicial nature.
Section 2 of R.A. 5434 explicitly provides:
Sec. 2. Appeals to the Court of Appeals shall be filed within fifteen (15) days from notice of the ruling,
award, order, decision or judgment or from the date of its last publication if required by law for its
effectivity or in case a motion for reconsideration is filed within that period of fifteen (15) days, then within
ten (10) days from Notice or publication when required by law, of the resolution denying the motion for
reconsideration. No more than one motion for reconsideration shall be allowed by any part.
We find that petitioner herein is correct in maintaining that its appeal was timely filed. Petitioner's motion
for reconsideration was denied by the Insurance Commission and advice of such denial was received by
petitioner on October 30, 1984. As petitioner would then have ten (10) days from October 30, 1984 or until
November 9, 1984, its appeal was well within the ten day period within which an appeal can be made to
the respondent Intermediate Appellate Court.

What We note is that Respondent IAC fell into error because it failed to consider and apply the pivotal
Section 2 of R.A. 5434, which recites that "in case a motion for reconsideration is filed within that period of
fifteen (15) days, then within ten (10) days from Notice or publication, when required by law, of the
resolution denying the motion for reconsideration ... ." Respondent's court's failure to do so led to its
erroneous conclusion.
The Insurance Commission is an administrative agency, with quasi-judicial functions. Consequently, the
period of appeal from final orders, decisions, resolutions or awards of said Insurance Commission may not
be necessarily modified or limited by section 39 of Batas Pambansa Blg. 129.
RATIO: "Quasi-judicial functions" is a term which applies to the action, discretion, etc., of public
administrative officers or bodies, who are required to investigate facts, or ascertain the existence of facts,
hold hearings, and draw conclusions from them, as a basis for their official action and to exercise
discretion of a judicial nature.
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